Determine alpha of the stock

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Reference no: EM1310121

Security A has an expected rate of return of 12% and a beta of 1.10. The market expected rate of return is 8% and the risk-free rate is 5%. The alpha of the stock is __________.

A) -1.7%

B) 3.7%

C) 5.5%

D) 8.7%

Reference no: EM1310121

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